Charter-Time Warner Cable Deal Closes

As expected, Charter Communications announced Wednesday (May 18) that it has closed its deal to merge with Time Warner Cable and Bright House Networks, creating a new No. 3 pay TV company and the second largest Internet service provider in the U.S.

TWC stockholders -- other than Liberty -- will receive $100 in cash and shares of common stock in New Charter, which will be called Charter Communications Inc., for each .5409 share of legacy Charter stock.

Holders of Time Warner Cable stock have the option of getting $115 in cash and new Charter shares equivalent to .4562 of legacy Charter shares.

Liberty Broadband has purchased $4.3 billion of newly issued common stock of the new Charter at $195.70 per share.

"I want to thank the management teams and all of the employees at Charter, Time Warner Cable and Bright House Networks for their hard work over these past 12 months," said Tom Rutledge, chairman, president and CEO of the newly merged Charter Communications.

Charter's board will comprise 13 directors. In addition to Rutledge as chairman, the board will have seven independent directors, two directors selected by Advance/Newhouse and three chosen by Liberty Broadband.